[lpolovets]

I think incentives are different on an individual level. Yes, if everyone built more housing then your property's value would not go up as much. But if a single individual builds housing that's very profitable, that'll way more than offset the tiny reduction to the values of that individual's other properties.

It's like a prisoner's dilemma where property owners as a class may not want more housing so that they are wealthier on paper, but any individual property owner will want to build housing because that'll grow their wealth faster.